Finance week + Finance | The Guardianhttps://www.theguardian.com/housing-network/series/finance-week+finance
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Top tips: the future of housing financehttps://www.theguardian.com/housing-network/2012/sep/29/top-tips-housing-finance-director
Our expert panel shared the challenges of housing finance and gave their top tips for aspiring finance directors. Add your own thoughts below<p><strong>Resist temptations: </strong>It's so tempting to sign up for something sexy that you don't really understand. The risks need to be fully understood. Certainly the ones that have been offered to us leave the risks squarely with the provider.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/29/top-tips-housing-finance-director">Continue reading...</a>Housing NetworkFinancePracticeSocial housingHousingSocietySat, 29 Sep 2012 09:24:01 GMThttp://www.theguardian.com/housing-network/2012/sep/29/top-tips-housing-finance-directorPhotograph: Christopher Furlong/Getty ImagesHousing associations should plan for all eventualities, including zero grant. Photograph: Christopher Furlong/Getty ImagesPhotograph: Christopher Furlong/Getty ImagesHousing associations should plan for all eventualities, including zero grant. Photograph: Christopher Furlong/Getty ImagesLiam Kelly2012-09-29T09:24:01ZLetting the Genie out: releasing a new product for first-time buyershttps://www.theguardian.com/housing-network/2012/sep/28/genie-home-ownership-first-time-buyers
Gentoo hopes to create a £150m portfolio of new homes for young families across the UK and attract institutional investors<p>Since the financial crisis, the housing market has become increasingly dysfunctional, in particular for today's generation of first-time buyers. In 2011, first timers took out 193,000 mortgages, half a million fewer than the 2007 peak of 700,000 mortgage arrangements. It's a massive drop.</p><p>Five years ago the average deposit for a first-time buyer was £12,000. Now it has reached £26,000, with 77% of buyers relying on family and friends for assistance – another all-time high.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/28/genie-home-ownership-first-time-buyers">Continue reading...</a>Housing NetworkFinanceShared ownershipPrivate rented sectorCase studiesSocial housingMortgagesFri, 28 Sep 2012 13:41:01 GMThttp://www.theguardian.com/housing-network/2012/sep/28/genie-home-ownership-first-time-buyersPhotograph: Matt Cardy/Getty ImagesCould a new home ownership product help tackle the lack of finance for aspiring first-time buyers? Photograph: Matt Cardy/Getty ImagesPhotograph: Matt Cardy/Getty ImagesCould a new home ownership product help tackle the lack of finance for aspiring first-time buyers? Photograph: Matt Cardy/Getty ImagesSteve Hicks2012-09-28T13:41:01ZWhere should housing providers invest for maximum social return?https://www.theguardian.com/housing-network/2012/sep/28/social-housing-community-investment-models
Community investment models seek a social rather than financial return on wealth, but are they hitting the right targets?<p>Octavia Hill, the Victorian founder of housing management, believed that "money spent on bricks and mortar alone was money wasted". She made sure that any surplus above the 5% she returned to her investors was given to tenants to spend as they wished. She used it to help her tenants to find work, set up gardening and singing classes and to establish the Army Cadet Force for their children.</p><p>This was community investment in its earliest form and Hill's legacy lives on. Last year, housing associations in England spent almost £750m on community investment projects, £227m of it on employment, training and health projects alone. Housing providers are even moving into running schools and buying up local newspapers.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/28/social-housing-community-investment-models">Continue reading...</a>Housing NetworkFinanceHousing managementCommunity buildingTenantsSocial housingSocial enterprisesFri, 28 Sep 2012 07:30:00 GMThttp://www.theguardian.com/housing-network/2012/sep/28/social-housing-community-investment-modelsPhotograph: CHRISTOPHER THOMOND/Guardian./Christopher ThomondHousing associations invest their income in community projects including employment and skills training for tenants. Is this money well spent? Photograph: CHRISTOPHER THOMOND/Guardian./Christopher ThomondPhotograph: CHRISTOPHER THOMOND/Guardian./Christopher ThomondHousing associations invest their income in community projects including employment and skills training for tenants. Is this money well spent? Photograph: CHRISTOPHER THOMOND/Guardian./Christopher ThomondColin Wiles2012-09-28T07:30:00ZGovernment guarantees need proper regulation to boost supplyhttps://www.theguardian.com/housing-network/2012/sep/27/government-housing-guarantees-need-regulation
Housing has turned a corner, as new government commitments make development possible despite tightening belts<p>It says a lot when one of the first announcements from the government post-reshuffle is about housing. Housing! It's a very welcome move and an indication that the industry's message over the urgent need for more housing and the economic benefits of investing in construction have taken root.</p><p>But what of the announcements themselves? Is a £10bn debt guarantee for affordable and private rental new homes and £300m for affordable housing and tackling empty homes enough to make an impact?</p> <a href="https://www.theguardian.com/housing-network/2012/sep/27/government-housing-guarantees-need-regulation">Continue reading...</a>Housing NetworkHousing network blogFinanceDevelopmentHousing managementSocietySocial housingConstruction industryThu, 27 Sep 2012 14:00:02 GMThttp://www.theguardian.com/housing-network/2012/sep/27/government-housing-guarantees-need-regulationPhotograph: AlamyHow long will it take for the government's £10bn guarantee scheme to unlock construction projects and get shovels into the ground? Photograph: AlamyPhotograph: AlamyHow long will it take for the government's £10bn guarantee scheme to unlock construction projects and get shovels into the ground? Photograph: AlamySteve Trusler2012-09-27T14:00:02ZWorking lives: the role of a social housing finance director in a recessionhttps://www.theguardian.com/housing-network/2012/sep/27/working-lives-housing-finance-director-recession
Branching out into commercial activities is just part of our answer to the housing crisis, but we never lose track of our core purpose<p>To quote the old cliché: "We live in interesting times." In the social housing sector, we appear to be at a tipping point where our traditional narrow mission has widened. We are now increasingly being seen as organisations who should provide a total housing solution, a solution that embraces commercial activities,building for sale and full market renting.</p><p>For my own group, this means that we now see ourselves as a housing business with a social housing core. We are not alone in this. It's clear that a number of other large housing associations are also repositioning themselves. It is also clear that the new housing minister, Mark Prisk, and the National Housing Federation (not always comfortable bedfellows) endorse our approach.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/27/working-lives-housing-finance-director-recession">Continue reading...</a>Housing NetworkFinanceSocial housingHousingSocietyThu, 27 Sep 2012 10:54:52 GMThttp://www.theguardian.com/housing-network/2012/sep/27/working-lives-housing-finance-director-recessionPhotograph: Graeme Robertson/Getty ImagesHousing finance professionals may choose to diversify their income streams, but they haven't lost sight of their mission to provide access to good quality housing for all. Photograph: Graeme Robertson/Getty ImagesPhotograph: Graeme Robertson/Getty ImagesHousing finance professionals may choose to diversify their income streams, but they haven't lost sight of their mission to provide access to good quality housing for all. Photograph: Graeme Robertson/Getty ImagesJack Stephen2012-09-27T10:54:52ZLocal authorities need a strong business plan to manage self-financinghttps://www.theguardian.com/housing-network/2012/sep/27/social-housing-revenue-account-reform-councils
Councils only took back control of their books six months ago, but it's already time to revisit financial projections<p>The self-financing deal may have only happened six months ago, but the basis for the current year's housing budget is now almost a year old and a lot has changed in 12 months. It's already time to ask whether the assumptions you made last year are still valid.</p><p>Some local authorities are actively exploring how to refocus their housing business, taking a serious look at how they deliver their services, what stock they hold and how to make best use of their financial capacity. Many councils could find that some of their projections have already changed. For example, levels of unpaid rent might increase more than expected by October next year because of the impact of welfare reform; planned improvements to the housing stock might have started running behind schedule; there may be new aspirations to build homes, or pressure to set a lower rent increase next year.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/27/social-housing-revenue-account-reform-councils">Continue reading...</a>Public Leaders NetworkHousing NetworkHousing network blogFinancePracticeHousing managementCase studiesSocietyLocal governmentHousingSocial housingLocal governmentThu, 27 Sep 2012 07:45:00 GMThttp://www.theguardian.com/housing-network/2012/sep/27/social-housing-revenue-account-reform-councilsPhotograph: Images.com/CorbisAre the assumptions you made in your housing revenue account business plan still correct? Photograph: Images.com/CorbisPhotograph: Images.com/CorbisAre the assumptions you made in your housing revenue account business plan still correct? Photograph: Images.com/CorbisGlenn Smith2012-09-27T07:45:00ZRaising money by becoming a commercial contractorhttps://www.theguardian.com/housing-network/2012/sep/26/social-housing-contracting-thrive-homes
Thrive Homes is plugging the funding gap by making its repairs and maintenance team available to other social businesses<p>In times of austerity it is more important than ever for social landlords to face their financial challenges head on and diversify as businesses. They are responsible for housing some of the most vulnerable members of the community and have a duty to continue to provide tenants with the services they need and deserve.</p><p>They can no longer work to the same business case that may have been a perfect fit a decade ago. Housing associations are not-for-profit organisations, but they need to run as streamlined businesses.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/26/social-housing-contracting-thrive-homes">Continue reading...</a>Housing NetworkFinanceCase studiesPracticeSocial housingWed, 26 Sep 2012 14:00:00 GMThttp://www.theguardian.com/housing-network/2012/sep/26/social-housing-contracting-thrive-homesPhotograph: Royalty-Free/CORBIS/ Royalty-Free/CORBISThrive Homes is raising money from new sources by becoming a commercial contractor. Photograph: CorbisPhotograph: Royalty-Free/CORBIS/ Royalty-Free/CORBISThrive Homes is raising money from new sources by becoming a commercial contractor. Photograph: CorbisPhilip Day2012-09-26T14:00:00ZRisk and reward: funding the future of social housinghttps://www.theguardian.com/housing-network/2012/sep/26/social-housing-financial-risk
Shifts in the way social housing is funding changes the nature of the risk providers face. That's why we need good governance<p>I've been involved in the funding of housing associations since 1975 and there has never been any shortage of innovation. The question is, where do the risks lie? This is particularly important now, when government is embarking on the first really new subsidy regime since 1974, and with the introduction of debt guarantees for both affordable and market rent housing.</p><p>The obvious next question is why is a subsidy required in the first place? The answer is, of course, that the market does not reliably supply homes that households in low income employment can afford. If we want a successful economy we have to intervene.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/26/social-housing-financial-risk">Continue reading...</a>Future of housing hubHousing NetworkHousing network blogFinanceHousing careersPracticeEfficiency and riskSocial housingWed, 26 Sep 2012 07:30:00 GMThttp://www.theguardian.com/housing-network/2012/sep/26/social-housing-financial-riskPhotograph: Toru Hanai/REUTERSNew ways of financing social housing open landlords up to new risks, meaning good governance is essential. Photograph: Toru Hanai/REUTERSPhotograph: Toru Hanai/REUTERSNew ways of financing social housing open landlords up to new risks, meaning good governance is essential. Photograph: Toru Hanai/REUTERSMervyn Jones2012-09-26T07:30:00ZFinding new investment through a tenants mutualhttps://www.theguardian.com/housing-network/2012/sep/25/investment-tenants-mutual-social-housing
As the wealth gap between owners and tenants reaches £100,000, could a mutual find new funding for social housing while reducing inequality?<p>Ideas of how to fund social house building abound. Most are technocratic solutions, failing to tackle deep-seated policy issues and tend to emphasise private investment models or <a href="http://www.policyexchange.org.uk/publications/item/why-aren-t-we-building-enough-attractive-homes-myths-misunderstandings-and-solutions?category_id=24" title="">sale of social housing assets</a> in high value areas.</p><p>There are a number of interrelated problems that social housing funding proposals need to address. First is a dwindling social housing supply; there are simply not enough homes to meet the nation's needs. There are <a href="http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/stockincludingvacants/livetables/" title="">25% fewer social homes</a> than 30 years ago and our supply of social housing stock has fallen by 10% in the last decade alone. This is at a time when waiting lists and homelessness are growing, and home ownership remains unaffordable to many hopeful first time buyers.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/25/investment-tenants-mutual-social-housing">Continue reading...</a>Housing NetworkFinancePolicyTenantsSocietySocial housingPublic financeHousing benefitHousing benefitInequalityTue, 25 Sep 2012 13:45:00 GMThttp://www.theguardian.com/housing-network/2012/sep/25/investment-tenants-mutual-social-housingPhotograph: Felix ClayThe wealth gap between owner-occupiers and social tenants has reached £100,000, but in areas such as Islington they share the same streets. Photograph: Felix ClayPhotograph: Felix ClayThe wealth gap between owner-occupiers and social tenants has reached £100,000, but in areas such as Islington they share the same streets. Photograph: Felix ClayKevin Gulliver2012-09-25T13:45:00ZWhy the government should establish a housing investment bankhttps://www.theguardian.com/housing-network/2012/sep/25/clive-betts-social-housing-investment-banks
Finding the investment to build new homes is a major challenge, so let's look to a Dutch solution to boost social housing<p>Earlier this year the communities and local government select committee, which I chair, undertook a detailed inquiry into the financing of new housing supply where we looked closely at a range of measures that might be used to fund the construction of over 230,000 homes every year – the number required to meet current levels of household formation.</p><p>In recent years, private housebuilders have not delivered more than 150,000 new homes a year. With the levels of constraint now holding back the mortgage market it is important that we develop other models to provide finance for essential housebuilding, not least through the channelling of long-term investment funds into housing development.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/25/clive-betts-social-housing-investment-banks">Continue reading...</a>Housing NetworkPolicyFinanceHousingSocietySocial housingTue, 25 Sep 2012 07:45:00 GMThttp://www.theguardian.com/housing-network/2012/sep/25/clive-betts-social-housing-investment-banksPhotograph: Andy Rain/EPAA housing investment bank would help bridge the gap between supply and demand, according to Clive Betts. Photograph: Andy Rain/EPAPhotograph: Andy Rain/EPAA housing investment bank would help bridge the gap between supply and demand, according to Clive Betts. Photograph: Andy Rain/EPAClive Betts2012-09-25T07:45:00ZThe UK's first social housing REIT one month onhttps://www.theguardian.com/housing-network/2012/sep/24/social-housing-real-estate-investment-trust
Launching the first investment trust has proved a bumpy ride, but SAF Housing has now found a formula that will satisfy investors<p>In seeking to marry the need for thousands of affordable and specialist homes with demands from potential property investors, the journey to create the UK's first social housing REIT has been fraught with financial and emotional challenges.</p><p>In launching the application process for funds, we have marked an important milestone and silenced some of our critics. We are now in the middle of the implementation phase and counting down to the day we float the Houses4Homes Real Estate Investment Trust (REIT) on the Alternative Investment Market (AIM) – a move that will help us reach £700m to invest in desperately needed social housing.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/24/social-housing-real-estate-investment-trust">Continue reading...</a>Housing NetworkFinanceHousing managementPrivate rented sectorHousing careersSocietySocial housingHousing network blogMon, 24 Sep 2012 07:45:02 GMThttp://www.theguardian.com/housing-network/2012/sep/24/social-housing-real-estate-investment-trustPhotograph: Royalty Free/Getty ImagesCould the first social housing real estate investment trust break open the gates to new funding? Photograph: Royalty Free/Getty ImagesPhotograph: Royalty Free/Getty ImagesCould the first social housing real estate investment trust break open the gates to new funding? Photograph: Royalty Free/Getty ImagesPhil Shanks2012-09-24T07:45:02ZLive discussion: the future of housing financehttps://www.theguardian.com/housing-network/2012/sep/21/live-discussion-future-housing-finance
Join our panel of housing finance directors from <strong>12pm on Monday 24 September</strong> to discuss how the funding business is changing and how to become a future finance leader<p>It is a tricky time to be a finance director. The housing sector has overseen a dramatic reduction in grant funding despite a severe shortage of new homes and a growing waiting list for affordable accommodation. Changes to the benefits system have also put housing associations' income stream at risk, with rent set to be paid directly to the tenant and not to the landlord under universal credit.</p><p>The cutbacks and reforms have piled pressure onto housing association finance staff to balance social purpose with financial viability. New housing minister Mark Prisk presented the challenge for housing's finance teams in his first speech at the National Housing Federation (NHF) conference when <a href="http://www.theguardian.com/housing-network/2012/sep/18/mark-prisk-pledges-work-housing-sector" title="">he urged the sector to be bold</a> and use its expertise to diversify its operations. He praised housing associations for branching out into new areas, such as private rented housing and new home ownership products, as ways to raise money to support the construction of affordable homes.</p> <a href="https://www.theguardian.com/housing-network/2012/sep/21/live-discussion-future-housing-finance">Continue reading...</a>Housing NetworkHousing careersFinancePracticeHousingSocietySocial housingFri, 21 Sep 2012 12:29:00 GMThttp://www.theguardian.com/housing-network/2012/sep/21/live-discussion-future-housing-financePhotograph: Tim Gainey / Alamy/AlamyThere's more to the job of a housing finance director than counting the beans. Photograph: Tim Gainey / Alamy/AlamyPhotograph: Tim Gainey / Alamy/AlamyThere's more to the job of a housing finance director than counting the beans. Photograph: Tim Gainey / Alamy/AlamyLiam Kelly2012-09-21T12:29:00Z